Seven Dongfang Ships Seized

Banks have seized seven of Dongfang Shipbuilding's tankers due to outstanding debts

According to Reuters, Credit Suisse and a group of Chinese banks have seized seven of Dongfang Shipbuilding's tankers due to outstanding debts of around $250 million after the Singapore Supreme Court ruled in favour of the creditors, a minority shareholder said.

The Singapore-based shipbuilder was delisted from the alternative investment market of the London Stock Exchange last week after struggling for months to stay afloat in the face of a severe downturn in the maritime industry.

Dongfang was previously contracted to deliver the seven vessels to European-based clients, which later cancelled the orders, former Dongfang chairman Narayanaswamy said, without identifying the clients and the value of the contracts.